Home > Investments > Peer to peer lending Sept 2013

Peer to peer lending Sept 2013

October 4, 2013

Coming back to Prosper.com after a year I’m a little disappointed that I couldn’t find loans with the criteria I had originally decided on. Today, there are only 11 loans that even begin to find the criteria, being in the B through D ratings, in fact I haven’t even seen a D rated loan in the past 2 weeks I’ve been looking. I’m not sure if it’s because fewer people are using Prosper.com or if more people are using it and taking advantage of the Automated Quick Invest feature.

The Automated Quick Invest feature allows lenders to setup a standing order to purchase loans that meet their criteria if they have the cash available. My problem is there isn’t a search criteria for what I’m looking for in a loan.  There is of course a search criteria on the ratings of the loan of course. I seem to be in the minority on one of my other criteria since Prosper.com has redesigned their Listing Summary page to hide what I’m looking for should the applicant fail to provide it. At first I thought it was gone all together.

You see for me, peer to peer lending is about helping other people out. It has that human connection, and that’s what’s I can no longer find. The description of the loan is what I look for. When I first started reviewing requests I quickly noticed that some people just filled out the bare minimum numbers. This gave me the impression that they were just going to do as little as possible to get their money. I felt these applicants we not committed to the program.  Other people only half filled out the description, I felt these people didn’t understand what they were partaking in, or again weren’t serious enough about the process. But those few who did take the time to fill in the description of why the needed the money, why they were a good candidate, and even talk about their financial situation really won me over. I know that is the hardest part, to talk about your situation. The description is where the applicant can communicate with lenders on a bit of a personal level. This to me is what gives peer to peer lending that real human connection.

Alas it would seem though that Prosper.com has just become another investor’s playground. Which may or may not be a good thing, only time will tell. Maybe I see so few B through D rated requests because they are all auto filled by the automatic Quick Invest tool of other lenders. Perhaps everyone has gone over to LendingClub.com instead. I’m disheartened that this piece of humanity has been lost in the financial shuffle, but the returns have been good. So I will look at setting up my own automatic investing tool and see if I pick up any of the mid rang loans like I originally picked. I will also take a look atLending Club to see if they have any of the human interaction I originally enjoyed with Prosper.com.

Categories: Investments
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